If a firm with a 20 percent market share merges with a firm with 10 percent of the market, by how much will the Herfindahl index change? The other firms have market shares of 40 percent, 10 percent, and 10 percent, 5 percent, 5 percent. O It falls by 200. O It rises by 10.
If a firm with a 20 percent market share merges with a firm with 10 percent of the market, by how much will the Herfindahl index change? The other firms have market shares of 40 percent, 10 percent, and 10 percent, 5 percent, 5 percent. O It falls by 200. O It rises by 10.
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Transcribed Image Text:If a firm with a 20 percent market share merges with a firm with 10 percent of the market,
by how much will the Herfindahl index change? The other firms have market shares of 40
percent, 10 percent, and 10 percent, 5 percent, 5 percent.
O It falls by 200.
O It rises by 10.
O It rises by 200.
O It falls by 250.
O It rises by 900.
O It rises by 400.
O It rises by 300.
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